Tate & Lyle moves away from US sugar market

Related tags United states

The British sugar processor Tate & Lyle announced on June 7 the
sale of the Western Sugar Company to the American sugar company
Rocky Mountain Sugar...

The British sugar processor Tate & Lyle announced on June 7 the sale of the Western Sugar Company to the American sugar company Rocky Mountain Sugar Growers Co-operative for US$96m, plus US$30m, based on sales revenues, payable after June 2003, reports the Financial Times. The sale is conditional on the purchaser arranging finance. Tate & Lyle also claimed to be in "advanced negotiations"​ to sell Domino Sugar, its east coast cane refiner. The disposal and a maintained annual dividend cheered the shares, which rose 15p to 274p. When Tate bought Domino Sugar for US$305m in 1988, its shares were trading above 800p. Although Domino is the leading sugar brand in the US, Tate's involvement in the US sugar industry has been chequered, with profits swinging sharply, and losses sustained in the past two years. Source: Financial Times

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